South Korea

Effective 24 July 2026, Notice 26-017 introduces a comprehensive tax-welfare integration package designed to stabilize low-income household finances through targeted tax reductions and direct transfer synergies. The measure expands the eligibility ceiling for the child-care tax credit, increases the earned-income tax credit percentage for marginal workers, and coordinates with the National Basic Livelihood Security System […]

Notice 26-013, promulgated on 24 July 2026, strengthens transfer-pricing documentation requirements for multinational enterprises operating through Korean subsidiaries. The regulation mandates that master-file and local-file updates be submitted within 90 days of fiscal-year close, reducing the prior 180-day window. New mandatory templates now require granular analysis of intra-group service transactions, intangible-license royalties, and cost-sharing arrangements,

Notice 26-014, issued on 24 July 2026, revises the tax treatment of employee stock options (ESOPs) granted by listed and unlisted Korean corporations, aiming to curb tax-motivated option exercises and ensure accurate valuation at exercise. The amendment mandates that the fair-market value at the time of option grant be objectively determined using a third-party appraisal,

On 22 July 2026, the National Tax Service of Korea released official guidance addressing compliance requirements under the updated transfer pricing framework and its interaction with the OECD Global Minimum Tax framework, commonly referred to as Pillar Two. The amendments aim to strengthen administrative coherence for multinational enterprises operating within Korea, providing clearer obligations regarding